House banking head alerts legislators to potential dangers of derivatives market.

WASHINGTON - Rep. Henry Gonzalez, D-Tex., chairman of the House Banking, Finance and Urban Affairs Committee, warned Friday that derivatives, left unchecked, "could be the next major crisis in our banking system."

In a speech to his fellow lawmakers in the House, Gonzalez said he was concerned that U.S. banks are increasingly becoming involved in derivative products entailing risks that are not fully understood by bank regulators and other market participants.